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A customer is purchasing a cake at Pladi, a dessert cafe famous among the MZ generation, located in the Lotte Department Store main branch.

[Asia Economy Reporter Jeon Jinyoung] Department store industry is putting all efforts into food and beverage (F&B) to capture the MZ generation (Millennials + Generation Z). While traditional F&B events at department stores focused on discovering long-established and famous eateries, recently they have been partnering with so-called ‘Instagrammable’ restaurants that are perfect for posting certification shots on social networking services (SNS).

According to industry sources on the 6th, Lotte Department Store is fervently discovering dessert cafes to attract the MZ generation. Popular SNS eateries mainly from Hannam-dong and Garosu-gil such as Catchball Club, Julive, Doho Project, and Deokdeokdeok Bakery have been introduced primarily at the main and Jamsil branches. As a result, Lotte Department Store’s F&B sales from July 1 to 24 grew by 70% compared to the previous year. The full-day popup held at the main branch in April received great response, leading to the opening of a permanent store in June. This brand is famous for celebrity birthday cakes.

A Lotte Department Store official stated, "For the seven popular dessert brands opened at the main branch from June to this month, over 50% of all customers are analyzed to be in their 20s and 30s."

Shinsegae Department Store also introduced Liam’s Bakery at its Gangnam branch. This bakery, famous in Hannam-dong, gained popularity through word-of-mouth on SNS. Liam’s Bakery is highly favored by MZ and female customers, holding six popups this year alone due to its pretty designs such as cupcake shapes. As a result, Shinsegae’s sweets and cafe sales in the first half of the year increased by 25.6% compared to the previous year.

Hyundai Department Store is continuing this trend mainly at The Hyundai Seoul, which has a high MZ visitor base. In February, they held a popup for the popular distilled soju brand Wonsoju, and also opened 88 Ramyeon Stage, a hotspot for 20s and 30s’ ‘certification shots.’ In August, until the 18th, they are holding a popup for the matcha specialty brand Super Matcha, targeting the MZ generation’s taste. Hyundai Department Store’s F&B sales from June to July 28 grew by 70.8% compared to the same period last year.

Galleria is launching a Korean dessert popup considering the rising popularity of ‘Halmaennial’ eateries among the MZ generation, referring to a ‘grandma’s taste’ that is savory and sweet. The popup store for ‘Yeonri Heejae,’ famous for its unique traditional Korean rice wine, will be available until the 18th of next month. When renewing the food hall ‘Gourmet 494,’ Galleria introduced all three popular cafes known for charcuterie: Salt House Deli, Noted, and Saddler House. From July 1 to 24, Galleria’s deli sales increased by 26% year-on-year, showing an upward trend.

An industry insider said, "The trend is shifting from popups of local eateries with 30-year histories to dessert popups that excite the MZ generation," adding, "As the MZ generation has emerged as major consumers, it has become important for department stores to understand their preferences and respond quickly."